How real estate agents can address a major concern of buyers.
Many buyers are on the fence about their purchasing plans due to increasing rates and alarming real estate news. As an agent, you should be ready to explain what’s happening in the market to ease some of their worries.
A major concern most buyers have right now is overpriced property values. Many think they should wait for interest rates and property values to decrease before making a move. However, we’re in a period of inflation, which means prices are rising. You have to explain to your buyers that if they purchase a home now, its value will appreciate by around 6% every year. I can send you some data and illustrations to support this claim and help you convey it to your clients. These can help you explain better to your clients. If you want a copy, just reach out and let me know.
“Asking prices are adjusting, but sales prices aren’t dropping.”
At 1:14 in the video, you’ll see a graph showing property values have increased while interest rates have dropped during the past five recessions. This proves that the increase in property values outpaces the drop in interest rates, which led to many buyers being priced out of the market. As a result, asking prices are adjusting; however, to think that sale prices are dropping is a misconception. Property values will always rise while interest rates continue to fluctuate.
Now is a great time to purchase a home since interest rates will likely drop as inflation surges and the recession grows. If you need more information about this topic or want a copy of the illustrations and slides, don’t hesitate to call or email me. I’m happy to help!